How Much Health Insurance Do You Need in India?

Life is uncertain and anyone can get sick or injured at any time. With rising medical expenses in India, health insurance has become more of a necessity than a choice. The COVID-19 pandemic has also encouraged a lot of people to buy medical insurance but buying the right coverage amount is still a matter of concern. Let’s find out the ideal health insurance coverage amount for different individuals.

Read More

Policybazaar exclusive benefits
  • 30 minutes claim support*(In 120+ cities)
  • Relationship manager For every customer
  • 24*7 claims assistance In 30 mins. guaranteed*
  • Instant policy issuance No medical tests*

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

*Tax benefit is subject to changes in tax laws. Standard T&C Apply

Find affordable plans with up to 25% Discount**
  • 1
  • 2
  • 3
  • 4

Who would you like to insure?

  • Previous step
    By clicking on “Continue”, you agree to our Privacy Policy and Terms of use
    Previous step

      Popular Cities

      Previous step
      Previous step

      Do you have an existing illness or medical history?

      This helps us find plans that cover your condition and avoid claim rejection

      Get updates on WhatsApp

      What is your existing illness?

      Select all that apply

      Previous step

      When did you recover from Covid-19?

      Some plans are available only after a certain time

      Previous step
      Advantages of
      entering a valid number
      You save time, money and effort,
      Our experts will help you choose the right plan in less than 20 minutes & save you upto 80% on your premium

      What is the Right Health Insurance Coverage That You Should Buy?

      The right health insurance coverage amount varies from one person to another. However, there are two rules that you must follow to choose the right coverage amount for your health insurance policy. They are:

      • Your medical insurance coverage amount should be at least 50% of your annual income.
      • Your coverage amount should be able to cover the cost of a coronary artery bypass graft at your preferred hospital.

      How Much Health Insurance Should You Buy?

      If you want to buy health insurance for yourself, then you must opt for a coverage amount equivalent to at least half of your annual income. For instance, if your annual income is Rs 8 lakh, then you must opt for a health insurance cover of at least Rs 4 lakh.

      However, healthcare expenses have increased tremendously in the last few years. In this situation, opting for a lower health cover, even if it is equivalent to 50% of your salary, may not be enough. Hence, insurance experts advise people to opt for a minimum health insurance cover of Rs 5 lakh to cover their medical expenses comfortably.

      Moreover, if you buy insurance in the early 20s, the chances of raising a claim are lower in early adulthood. As a result, you will be able to increase your sum insured at no extra cost with the help of a cumulative bonus on every claim-free year.

      How Much Health Insurance Should You Buy for Your Family?

      Just like yourself, you need to cover your entire family under a medical insurance policy. This is because a medical emergency can occur with any member of your family at any time and a single hospitalization can severely reduce your family’s savings. To avoid such a situation, insurance experts advise a family of four to opt for a minimum health insurance cover of Rs 10 lakh.

      The good thing about buying medical insurance for your family is that you can opt for a family floater plan and reduce your premiums substantially. Under family floater plans, a single sum insured is shared by all insured family members on a floater basis. Since you do not have to buy individual health policies for each family member, it lowers your overall premium costs. Besides, the chances of all family members raising a claim in the same year are very low.

      For example,

      Suppose the premium for a family health policy of Rs 10 lakh is Rs 20,000 and the cost of an individual health policy of Rs 5 lakh is Rs 10,000. So, if you buy an individual health policy for four family members, you will have to pay a total premium of Rs 40,000. However, you can get the same coverage on a floater basis under a family health insurance plan for Rs 20,000.

      How Much Health Insurance Should You Buy for Your Parents/ Senior Citizens?

      Senior citizens and parents are most vulnerable to illness and diseases. They require health insurance the most as they are more likely to develop a medical condition or get hospitalized. Given the medical inflation today, bypass surgery can easily cost up to Rs 2 lakh in a good hospital while a small surgical procedure can easily cost you up to Rs 1 lakh.

      Hence, senior citizens and parents require a health policy with a high sum insured amount. You can opt for health insurance for parents or senior citizen health insurance with a high sum insured to ensure adequate coverage.

      But with an increase in the sum insured, the premium will also increase. Insurance companies generally charge a higher premium to senior citizens as they are more likely to raise a claim. Thus, make sure to check the premium of the health insurance policy before buying it for your parents or senior citizens.

      Things to Keep in Mind While Choosing the Right Health Insurance Coverage Amount

      Here are some things to keep in mind while choosing the right health insurance coverage amount:

      • Age of the Insured – The age of the person to be insured should be considered while deciding the coverage amount. The higher is the age of the person, the higher sum insured amount should be opted. This is essential because you are more likely to fall sick as your age increases.
      • Medical History – The medical history of a person should be checked before choosing a coverage amount for the policy. A person with pre-existing diseases may need to raise frequent claims. As a result, you should go for a higher coverage amount if you have a medical history.
      • Type of Hospital – The type of hospital where you plan to avail treatment should be considered at the time of deciding the policy coverage amount. Treatment at a reputed private hospital will cost you more than in a government hospital. Hence, a higher sum insured should be opted by people who prefer reputed private hospitals.
      • Ability to Afford – Your income and the ability to afford a health insurance plan should be kept in mind while deciding the coverage amount. If your income is limited and you cannot afford to pay costly premiums, then you must opt for a lower sum insured.
      • Supplementary Plan – If you have a supplementary health policy, such as a group health insurance policy, then you can opt for a lower sum insured while buying medical insurance. This is because you are already getting medical coverage from your employer and thus, do not need to buy another policy with a high coverage amount.

      Summing It Up

      Buying health insurance with an adequate sum insured is a basic necessity for everyone today. It is important to opt for a medical insurance coverage amount that sufficiently covers your medical expenses today as well as in the years to come. Do remember to keep the above-mentioned rules and factors in mind while deciding the right coverage amount for your health policy.


      • Q1. Is 5 lakh health insurance enough?

        Ans: A 5-lakh health insurance is adequate if the insured lives in a second-tier city or town. However, in case the insured is living in a metro city like Delhi, Mumbai, or Gurgaon, more than 5 lakh health insurance may be needed. It is advisable to get a health insurance plan that is higher than 5 lakhs. Considering that the insured has dependents living with them, it is advisable to purchase a health insurance plan that is at least 50 lakhs to 1 Crore.
      • Q2. How much coverage is sufficient for health insurance?

        Ans: When purchasing a health insurance plan, it is important to ensure that a sum assured of 2 to 3 times the individual’s salary is adequate. However, it is also important to note that the sum insured should be higher according to age. For example, if an individual is above the age of 40 years, they should invest in health insurance that is at least three to five times higher than their salary.
      • Q3.What is the limit of health insurance coverage in India?

        Ans: There is no limit on the amount of coverage for a health insurance policy in India. Several health insurance policies provide up to Rs. 1 Crore to Rs. 2 Crore in health insurance coverage.
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

      Health insurance articles

      Recent Articles
      Popular Articles
      Reasons to Purchase High-Value Health Insurance Cover

      21 Feb 2024

      When you decide to purchase a health insurance plan for you and
      Read more
      Surgeries Covered by New India Assurance Health Insurance Plans

      22 Feb 2024

      In an era where healthcare expenses are skyrocketing in India, the
      Read more
      Is a 10 Lakh Health Insurance Adequate in Your City?

      10 Jan 2024

      An ongoing medical inflation of 14 percent in India (the highest
      Read more
      Dental Treatment Coverage from Star Health Insurance

      21 Dec 2023

      The rising costs of healthcare services have made it necessary for
      Read more
      11 Reasons Why Senior Citizens Should Buy Aditya Birla Activ One Plan

      05 Dec 2023

      Health insurance is one of the biggest assets that senior citizens
      Read more
      How to Apply for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY)?
      Ayushman Bharat Yojana is a flagship health insurance scheme launched by the Government of India to offer universal
      Read more
      Best Health Insurance Plans for Senior Citizens
      Senior citizens are the most prone to diseases. Considering the medical inflation in India, buying health insurance
      Read more
      Does Health Insurance Provide Coverage for LASIK Eye Surgery?
      A vast majority of the Indian population is suffering from vision problems. For some of them, LASIK eye surgery is
      Read more
      10 Major Benefits of Ayushman Bharat Yojana
      Pradhan Mantri Jan Arogya Yojana (PM-JAY) is the second component under Ayushman Bharat Scheme. PM Narendra Modi
      Read more
      How Senior Citizens can save Tax with Medical Bills u/s 80 D?
      Senior citizens can save on income tax by availing tax benefits on medical expenses under Section 80D of the Income
      Read more

      Download the Policybazaar app
      to manage all your insurance needs.